Buffett sees rating reduced on recession impact

The business controlled by investment legend Warren Buffett has had its credit rating cut by the very company where it holds a big stake.

Moody's has stripped Buffett's Berkshire Hathaway of its topnotch Aaa rating, reflecting the impact of the recession and falling share prices on its investments.

Berkshire Hathaway has a 20pc shareholding in Moody's.

Warren Buffett, chairman and CEO of Berkshire Hathaway, which has had its Aaa credit rating stripped by Moody's

The downgrade underscores that not even one of the world's most famous investors - the Sage of Omaha as Buffett is known - is immune to the financial crisis.

It comes hot on the heels of a similar move by fellow credit ratings agency Fitch.

Standard & Poor's still has a Aaa rating on Buffett's investment company but recently changed its outlook to negative, suggesting it too could follow suit.

Last month, Berkshire reported a 62pc drop in 2008 profits, marking the worst performance since Buffett, who is the world's second richest man with a fortune estimated at £25bn, took the reins 44 years ago.